Borrower is looking to purchase land that happens to have a mobile home on a cement slab included. The home really isn't worth anything but the borrower thinks if they fix it up they can rent it out. There isn't any secured interest in the home itself, just the land. Originally I was thinking HMDA reportable as "other" but now I am second guessing if it is HMDA reportable at all. Thoughts?

a mobile home on a cement slab

Is the mobile home now considered part of the real estate? If so then this would be a home purchase.

From my understanding it is not "attached" but on a concrete slab. The seller does not have a Title/Certificate of Ownership from the State for the mobile home per offer to purchase.

Then you need to figure out what you are dealing with. The borrower does not just own the mobile home because it is sitting on the property.. You don't just make a loan with a mobile home on a property and not figure out who owns the mobile home or how it is titled. The lender line of "we are not taking it as collateral" is BS. So the appraiser goes out and appraises the land like it is vacant. You make the loan and the borrower walks. You find out that the mobile was a meth lab and the bank is on the hook for paying the $100K in mitigation costs in order to dispose of the MH and make the land salable.

That is a very good point and also very funny.
Well whomever owns the the property also owns the mobile home. There just isn't a "title" for it. Sketchy/strange, yes I agree. I assume when they plan to rent it out they will get it "titled"
According to the lender they would be better off to junk it but the borrower wants to try and fix it up and turn it into a rental property. The well and septic tank work, so it is a legit dwelling. I just keep going back and forth.

Check the county tax records to see if it's being taxed as land only. If not, it's possible the title been retired and it's taxed as land with home.

"Well whomever owns the the property also owns the mobile home. There just isn't a "title" for it."

You must live in a very weird jurisdiction if that is the case. If there is no title to the mobile, then the title would typically be required to have been formally surrendered and it may be part of the real property on which it sits or is actually part of another parcel of real property.

I am at a loss as to why the bank would be OK with a borrower placing a mobile home on the property where they cannot provide proof that they own the mobile home or who owns the mobile home. That equates to I believe would be stolen property.

While you might find this humorous, it is things like this that could end up costing a financial institution serious grief down the road. Someone is being lazy and since this must be a pretty small loan, there is no upside for the bank here.

I 100% agree with you and do not think it's "funny" Your comment just took me off guard. I spoke to the lender and they are willing to take the risk because as they put it, the mobile home is just junk and would be better off just tossing it. They are only financing the purchase of the land as well, the mobile home is just and added "headache"

I will have them check the tax records and see what they can find.

"they are willing to take the risk"

Which always means to me that they are willing to stand up in front of the board of directors and explain to them why they made a loan with stolen property located on it - or maybe it is a meth lab.

Lenders say that all the time and when it comes down to it, they are not really willing to take the personal risk - but just put the bank in jeopardy. Make sure the proper chain of management is informed. Hopefully it is not in a flood zone too. .

Okay, I have a bit more information (hopefully this helps)
This is the property description: Borrower looking to purchase 1.59 acres of land, purchase includes a 14x70 3 bedroom mobile home on a concrete pad. Mobile home needs plenty of interior work. No title, not tied down. Well and septic are in working order. Being sold as-is and where-is. Transfer by guardian deed. No RECR. Sale subject to court approval.
To me this reads as HMDA reportable.

I agree with that assessment. And don't forget your flood determination.

Oops - I should have added - you need to find when the mobile home was built. If it's prior to June 15, 1976 it is not considered a dwelling per HMDA regulation

Thank you and thank you!!

OH yes, I already checked that. It's only 15 years old, but thank you!!

Wait a minute. If the mobile home has no title and is not attached to the real property - why is this a HMDA reportable loan?

Well, originally based on "no title" I didn't think it was HMDA reportable either, but the home is included in the write-up and property description and the goal is to fix it up and rent it out. ( though we are not financing that portion). This is why I keep going back and forth. I almost feel we could argue it either way...

In the loan officer write-up means absolutely nothing you know. It is either titled or the title has been surrendered and it is part of the real property. Only that will determine whether or not you are taking it as collateral. You never indicated what determination was ever made.

Not to regurgitate what has already been said but in short the bank needs to:

1. Determine the legal ownership of the mobile home and if it is considered part of the real property (as mentioned earlier the tax records). Or I will assume title insurance will be involved due o the land purchase, have the title company do the leg work.
2. Have the mobile home removed before closing the loan.
3. Walk away.

After a lot of searching and reading state laws. It is considered real property, which according to WI , a manufactured home title is not needed when:
101.9203(4) stats. The owner of a manufactured home that is situated in this state or intended to be situated in this state is not required to make application for a certificate of title under s. 101.9209 if the owner of the manufactured home intends, upon acquiring the manufactured home, to make the manufactured home a fixture to land in which the owner of the manufactured home has an ownership or leasehold interest subject to ch. 706.

Thank you both for pushing me to get to the bottom of this. Not so easy when you're new and the lender is seasoned.
Now I am thinking it is considered a purchase for investment property.

Now I am thinking it is considered a purchase for investment property.

I agree because since the MH is real property the mortgage will encumber all current and future improvements to the property.

Understanding the real terms and the legal implications is important. While the lender may see you as an impediment to getting the loan done, the bank must realize you are protecting the bank's assets.

I get the feeling this was a "who cares about the MH" but the loan cares and the regs care.